ESI Contribution period and Benefit period
If the wages of an employee (excluding remuneration for
overtime work) exceeds the wage limit prescribed by the Central Government
after start of contribution period, he continues to be an employee till the end
of that contribution period and the contribution is to be deducted and paid on
the total wages earned by him.
Let’s take an example, say Mr. Swaroop was earning wages of
Rs. 20,000 till June 2019, the wages increase to Rs. 25,000 from July 2019. The
contribution period is 1st April 2019 – 30th September 2019 and
hence the deduction will continue on the revised salary up to September and he
will be eligible for the benefit up to 30th June of the following
Similarly say an employee Mr. Victor earns a wage of Rs.
20,000 till October 2019 and from next month he earns Rs.23,000. The deduction
must continue on the revised salary up to 31st March 2020 and he will be
eligible for the benefit up to December 2020.
1st April 2019 – 30th September 2019
1st January to June 2020
1st October – 31st March 2020
1st July to 31st December